Five Democratic legislators of the US Senate called leadership in regulatory organizations to examine conflicts of potential interests of a stablecoin launched by World Liberty Financial (WLFI), the cryptography company supported by the family of US President Donald Trump.
In a letter of March 28 from the Banque Committee of the US Senate, the Senator of the Massachusetts Elizabeth Warren and four other Democrats asked the president of the Federal Reserve Committee on Supervision and Regulation, Michelle Bowman, and the interim controller of the currency Rodney Hood, how they intended to regulate the WLFI and its Stablecoin, USD1.
March 28 Letter of five Democratic senators in the OCC, Fed Leadership. Source: Banking Committee of the US Senate
The letter has intervened while the members of the Congress are considering legislation to regulate stablecoins through the orientation and the establishment of national innovation for American stables, or Genius Act. The bill, if recommended, would essentially allow the office of the Currency Controller (OCS) and the Federal Reserve to supervise the regulations of Stablescoin, including for transmitters like WLFI and its USD part.
Trump also signed a decree in February by trying to have all the federal agencies – allegedly including the OUT – “consult regularly and coordinate policies and priorities” with the managers of the White House, giving the President an unprecedented control.
“The involvement of President Trump in this company, because he strips the financial regulators of their independence and that the congress simultaneously considers the legislation on the reserve of stables, presents an extraordinary conflict of interest which could create unprecedented risks for our financial system and the integrity of the decisions taken by the [Fed and OCC]”Said the letter, adding:
“The launch of a stablecoin directly linked to an exercise president who benefits financially from the success of the stable presents unprecedented risks for our financial system.”
In relation: Trump’s Stablecoin deepens concerns about conflicts of interest
Since the launch of World Liberty in September 2024 – months before the American elections and the inauguration of Trump – many objectives of the company have been wrapped in secrets. The project website notes that Trump and some family members control 60% of the company’s equity interests.
https://www.youtube.com/watch?v=JMQJ01_ZKA8
As of March 14, World Liberty had made two sales of public tokens, which allowed the $ 550 million company. On March 24, the project confirmed the launch of its first stablecoin on the BNB and Ethereum channel. President’s son Donald Trump Jr. also launched USD1 from the DC blockchain summit on March 26 with three of WLFI co-founders.
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